Apple Inc. AAPL has put a key Taiwanese supplier — Pegatron Corp.— on probation after it discovered cases of labor violations, Bloomberg reported early Monday.
What Happened: The violations were related to a student worker program and Apple said it wouldn’t resume the business with the iPhone maker until corrective actions are taken.
“Pegatron misclassified the student workers in their program and falsified paperwork to disguise violations of our Code, including allowing students to work nights and/or overtime and in some cases to perform work unrelated to their major,” the Cupertino-based technology giant said in a statement, as reported by Bloomberg.
“Our investigations have found no evidence of forced or underage labor.”
Pegatron shares dropped 2.09% lower in Taipei after Bloomberg reported the news.
Why It Matters: This isn’t the first time that Pegatron is facing allegations of labor violations. In December 2014, a BBC report claimed there was poor treatment of workers at a factory where Pegatron made Apple products.
A report by China Labor Watch in 2016 said Pegatron's workers in Shanghai were often forced to work "excessive and illegal overtime," as reported by Quartz at the time.
Price Action: Apple shares closed 0.1% lower at $118.69 on Friday.
See Also: Apple Could Fail To Meet iPhone 12 Holiday Demand Due To Chip Shortage: Report
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